AMFI and fund houses are waiting for SEBI’s response on the format of distributor commission disclosure to meet the October 1st deadline.
CVR Rajendran, CEO, AMFI told Cafemutual that AMFI has sought recommendations from the market regulator on the format of commission disclosure. “We have already requested SEBI to guide us on drafting a uniform format to disclose commission structure of distributors. We are expecting that the market regulator will come out with the guidelines on this very soon.”
The CEO of a foreign fund house said that his fund house is awaiting SEBI’s direction on meeting commission disclosure requirement.
Earlier, in March, the market regulator had instructed AMCs to disclose commissions of distributors in the half-yearly consolidated account statements (CAS) from October 2016. This commission figure will include all direct monetary payments and other payments made in the form of gifts/rewards, trips, event sponsorships etc. by AMCs to distributors, said a SEBI circular issued today.
In addition to commissions, AMCs will also have to publish the scheme TER in percentage terms for the half-year period for both direct and regular plans. “Such half-yearly CAS shall be issued to all MF investors, excluding those investors who do not have any holdings in MF schemes and where no commission against their investment has been paid to distributors, during the concerned half-year period,” stated the SEBI circular.
